IRA PS Case Studies State & Local Government

Inflation Reduction Act case studies Explore how Baker Tilly helped three different organizations maximize the IRA.

Minnesota Sewer Utility

40-50%

Project costs covered

The business challenge A municipal sewer utility in central Minnesota sought to explore the potential benefits arising from the Inflation Reduction Act (IRA). The city was already using clean hydrogen (and solar) to power the sewer treatment plant. They also had the ability to store excess hydrogen for future use as needed, thereby reducing their need to buy off the grid. The city planned to eventually use this stored hydrogen to power their fleet of trucks as well—but was unsure of the feasibility (and financial /environmental benefit) of such plans.

Strategy and solutionThrough extensive examination, Baker Tilly determined that the client stood to benefit from the Investment Tax Credit (ITC) by meeting almost all of their energy needs with what they produce. By doing so, they would cover roughly 40-50% of eligible project costs and gain preliminary savings estimates of $3.6-4.8M. The results of Baker Tilly’s analysis determined that the use of clean hydrogen to power the plant and store it for future use is a sustainable and environmentally friendly solution—while the ability to use the stored hydrogen to power their fleet of trucks would be a cost-effective and efficient solution.

Preliminary savings estimates

$3.6-4.8M

Minnesota Sewer Utility

Indiana Correctional Facility

City in Minnesota

Project costs covered from an ITC

30%

Strategy and solutionBaker Tilly estimated the client would cover 30% of its eligible solar panel project costs from an Investment Tax Credit (ITC). Additionally, since the project was less than one megawatt, they would encounter fewer requirements (thereby freeing up time and labor resources). To ensure the next steps progress as desired, Baker Tilly is guiding the correctional facility through the completion of the bond issuance for the project.

The business challenge A county correctional facility located in Indiana, installed solar panels on the top of their roofs to reduce their power costs. The client expressed interest in understanding the advantages they could gain from the Inflation Reduction Act (IRA). Additionally, trends in their industry were influenced by government funding and policies—as well as the number of people incarcerated—thus they wanted to prioritize cost-effective and efficient policies and procedures.

Indiana Correctional Facility

Estimated covered project costs

40-50%

Strategy and solutionThrough extensive examination and analysis, Baker Tilly confirmed that geothermal heating and cooling technologies—including geothermal heat pumps and district heating—offer green, efficient temperature control solutions for buildings, campuses and even entire communities. Widespread adoption of these technologies could help enable the city to meet their 2030 greenhouse reduction plans while decarbonizing the building and electricity sectors, reducing energy costs for families, stabilizing the energy grid and boosting community resilience. Additionally, Baker Tilly determined the client stands to benefit from the Investment Tax Credit (ITC) under the IRA by covering an estimated 40-50% of qualifying project costs and gaining between $8 - 10M in ITC tax credits. To move the project forward, Baker Tilly is completing the bond financing for this project.

The business challenge A city located in Minnesota was installing geothermal heating and cooling for multiple city buildings with plans to move away from electric and gas powered heating and cooling entirely. In an effort to help reach their goal of net-zero energy usage by 2030, the client would eventually like to embrace geothermal heating and cooling citywide.

City in Minnesota

ITC tax credits gained

$4-12M

Minnesota Sewer Utility

Indiana Correctional Facility

City in Minnesota

Project costs covered

40-50%

Preliminary savings estimates

$3.6-4.8M

Minnesota Sewer Utility

Project costs covered from an ITC

30%

Indiana Correctional Facility

Estimated covered project costs

40-50%

ITC tax credits gained

$4-12M

City in Minnesota

The business challenge
A municipal sewer utility in central Minnesota sought to explore the potential benefits arising from the Inflation Reduction Act (IRA).

The business challenge
A city located in Minnesota was installing geothermal heating and cooling for multiple city buildings with plans to move away from electric and gas powered heating and cooling entirely. In an effort to help reach their goal of net-zero energy usage by 2030, the client would eventually like to embrace geothermal heating and cooling citywide.